Asset Management Firms Set Fees for Ethereum Exchange-Traded Funds

Asset management firm BlackRock has set the fee for its spot Ethereum exchange-traded fund at 0.25%. The iShares Ethereum Trust is expected to launch with this fee, which will be accrued daily at an annualized rate equal to 0.25% of the fund’s net asset value and payable at least every three months. BlackRock’s S-1 registration statement, filed on July 17, indicates that the fee could be waived for certain periods, a practice they plan to implement upon launch. The spot Ether ETF will also start trading at a reduced fee of 0.12%, until 12 months have passed or after it amasses $2.5 billion in net assets, whichever happens first.

Other asset management firms have also declared their proposed fees and waiver periods, as a rush of S-1 filings have flooded the market. The Franklin Templeton-issued spot Ether ETF will charge a fee of 0.19%, while the Bitwise Ethereum ETF and VanEck Ethereum ETFs have set their fees at 0.20%. The 21Shares Core Ethereum ETF’s fee stands at 0.21%, and Fidelity and Invesco Galaxy will offer the same 0.25% fee as BlackRock. However, some firms plan to waive their fees entirely for certain periods. For example, VanEck and Bitwise will waive their fees until they reach specific net asset thresholds.

Reports suggest that at least three ETF issuers, including BlackRock, Franklin Templeton, and VanEck, have received “preliminary approval” from the United States securities regulator. Analysts predict that once these approvals are complete, the spot Ether ETFs could start trading on major exchanges as early as next Tuesday. The launch of spot Ether ETFs is highly anticipated, with some experts projecting inflows of up to $15 billion in the first 18 months of trading, similar to the success seen by spot Bitcoin ETFs since their launch six months ago.